TANZANIA: TANZANIA Breweries Public Limited Company (TBL) shareholders have ratified a dividend of 537/- per share for the period ended December last year, at an Annual General Meeting (AGM).

The dividend approved is equivalent to 158.4bn/-, which is an increase of 85 per cent over the prior year.

TBL Chairman Mr Leonard Mususa, said despite the challenging operating conditions last year, including global geopolitical tensions and local excise duty hikes, the brewer demonstrated resilient growth and delivered significant value to our shareholders.

“Our steadfast execution of strategic initiatives and the market’s confidence in our diverse portfolio of brands resulted in a notable increase in revenue,” Mr Mususa said.

The revenue growth was driven by both beer and spirits, with significant contributions from the core and core-plus segments of the beer business and spirits.

He said the Group continues to execute its proven commercial strategy and increase sales and marketing investments behind its portfolio of beer and beyond beer brands to deliver consistent growth and long-term value creation.

“This accomplishment underscores our commitment to creating long-term value for our shareholders and reinforces our position as one of the nation’s leading contributors to economic growth,” he said.

During the year under review, TBL procured over 74 per cent of its raw materials within the country, directly and indirectly supporting the creation of over a million jobs throughout its supply chain.

Furthermore, TBL paid 586bn/- in taxes to the government last year compared to 528bn/-the year before, solidifying its position as one of the nation’s biggest taxpayers.

TANZANIA: THE Tanzanian shilling has depreciated by 5.0 per cent over the past six months up to July, as it faces heightened demand for US dollars driven by tightening monetary policies in advanced economies and rising global commodity prices.

According to the Bank of Tanzania (BoT)’s Indicative Exchange Rate report, the exchange rate stood at 2,652/40 shillings per US dollar as of yesterday, compared to 2,526/60 at the end of January.

The Monetary Policy Committee (MPC) of the BoT noted in its latest report that while the foreign exchange market continues to experience liquidity shortages, there was some improvement towards the end of June due to increased inflows from tourism, gold, and cash crops.

In the Interbank Foreign Exchange Market (IFEM), exchange rate quotes showed slower movements with narrower spreads compared to the previous quarter.

The shilling depreciated by approximately 2.2 per cent quarter-on-quarter in June, slightly faster than the 1.8 per cent depreciation seen in the first quarter of this year.

“In the retail market, the exchange rate depreciated by around 3.2 per cent quarteron-quarter, which was faster than the 1.9 per cent depreciation in the first quarter,” the report stated.

Market turnover in the IFEM was $87.5 million as of the last Tuesday of last month, down from 129.8 million US dollars recorded in the first quarter of this year and 208.6 US dollars million in the same quarter last year.

The central bank anticipates further improvement in foreign currency liquidity through ongoing policy interventions, including measures to reduce domestic transactions denominated in foreign currency, alongside improvements in the current account.

Economist and investment banker Dr. Hildebrand Shayo recently highlighted that over the past decade, the shilling has depreciated on average by 6.3 per cent annually.

He cited historical rates such as 1,634/99 shillings per US dollar in April 2014, climbing to 2,542/68 in April 2024.

The Monetary Policy Statement (MPS) issued in June attributed shilling pressure to high foreign exchange demand amid tightening monetary policies in advanced economies and elevated global commodity prices.

“To address this pressure, the central bank implemented various measures, including tightening monetary policy, increased engagement in the IFEM, and urging stakeholders to prudently utilize foreign exchange during challenging periods,” the MPS report indicated.

In April this year, the MPS reported a nominal exchange rate depreciation of 11.2 per cent year-on-year, contrasting with less than 1 per cent depreciation in the preceding two years.

DAR ES SALAAM: AFRIPRISE Investment profit has minutely increased by 1.0 per cent, attributing the trend to improved capital market conditions and gains from the sale of treasury securities.

The financial results of the listed firm, which is an investment wing of Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), show that the net profit increased to 1.97bn/- last December from 1.95bn/- in 2022.

“The company experienced a 3.0 per cent overall increase in income and a 1.0 per cent increase in profit after tax

“This growth is attributed to improved capital market conditions leading to higher dividend and interest income…and form disposal of listed shares,” the statement said.

However, earnings per share decreased to 24/- last year from 25/- in the prior year due to the issuance of additional shares in 2023.

Additionally, the company’s investment in government securities has grown significantly by 10.6 per cent, reaching 15.03bn/- until the end of last year up from 13.58bn/- recorded in the prior year.

Furthermore, the company’s total assets, according to the report, grew by 41 per cent to 49.99bn/- recorded last December from 35.21bn/- posted in 2022.

As a result, the company’s share capital improved by almost six times, soaring to 12.74bn/- at the end of December, last year from 2.16bn/- registered in a similar period of the preceding year

Additionally, the Dar es Salaam-based “This growth is attributed to improved capital market conditions leading to higher dividend and interest income…and form disposal of listed shares,” the statement said.

this diversification included expanding equity investments aiming to capitalise on opportunities in the broader East African region.

Despite the profit registered, the firm dividend payout remains unchanged for last year at 13/- per share similar to the amount paid in 2022.

The same dividend payment is attributed to the modest improvement in the company’s overall profit in 2023.

Last month, TCCIA Investment Public Limited Company changed its name to Afriprise Investment to cope up with the unfolding market trends and emerging business opportunities.

DAR ES SALAAM: CAPITAL markets investment value has increased by 23.2 per cent as of last month compared to the amount recorded in April last year.

New records reveal that the investment value has reached 43.4tri/- as of April this year compared to 35.2tri/- recorded during the corresponding period previous year, according to Chief Executive Officer of the Capital Market and Securities Authority (CMSA), Mr Nicodemus Mkama.

Mr Mkama attributed the growth to the implementation of government’s plans and strategies which has brought positive results in the development of the financial sector, especially the capital markets.

Mr Mkama further noted that sales of shares and bonds have also gone up by 64.5 per cent, hence reaching 4.2tri/- by April this year from 2.5tri/- during the same period last year.

Also Read: Capital markets investment value up 31pc

On the other hand, the value of collective investment schemes has also increased by 44.7 per cent, reaching 2.1tri/- in the past one year from 1.4tri/- recorded in April, 2023. Mr Mkama stated this yesterday in Dar es Salaam at an event to officiate at the launching of the ‘Timiza Fund’.

The Timiza Fund is aimed at enabling small, medium and large investors to collectively mobilise funds for investing and benefit from the opportunities in financial sector, especially capital markets.

The Fund is run by Zan Securities Limited, which is the Fund Manager, while Mwanga Hakika bank is the custodian.

Chief Executive Officer of the Capital Market and Securities Authority (CMSA), Mr Nicodemus Mkama, said specific objectives of the Fund is to empower Tanzanians from different cadres, including the youth, women and special groups to benefit from the financial sector, building culture of saving and investing among Tanzanians to enable citizens to participate in economy.

Mr Mkama stated that in ensuring the objectives of the Fund are met, the CMSA has approved lowering the amount for participation in this Fund from 1m/- to 10,000/- only.

“This is a very important step for encouraging participation of investors from different cadres including lowincome citizens,” he said.

According to the policy and guidelines for investment in Timiza Fund, the monies to be mobilised from the investors will be invested in capital markets, including Listed Equities, Treasury Bonds and Corporate Bonds.

DAR ES SALAAM: DAR ES SALAAM Stock Exchange (DSE) yesterday staged a research challenge aimed at fostering financial and investment literacy among students from higher learning institutions.

The ‘CFA Institute Research Challenge 2023/2024 local competition’ supervised by the CFA Society East Africa intends to empower youth on various financial matters.

The DSE’s Acting Director, Ms Mary Mniwasa, said the event represents a unique opportunity to witness the youth competency aspiring financial professionals who have decided on the principles of integrity, professionalism, and ethical conduct.

“The challenge not only showcases youth’s analytical skills but also discloses the importance of ethics in the decision-making in an ever-evolving Eco finance,” Ms Mniwasa told reporters.

The stock exchange is committed to ensure financial literacy among Tanzanians through encouraging innovation.
The competition involved teams from Ardhi University, Mzumbe University, the University of Dar es Salaam (UDSM), and the University of Dodoma (UDOM).

CFA Institute Research Challenge is an annual global competition that connects university students with investment professionals from within the CFA Society network.
The CFA Society Administrator for Tanzania, Ms Lucy Shantiwa, said the challenge is focused on increasing the financial awareness and investment matters to higher learning students.

“We involve students for at least four to five months. They are allocated companies to conduct analysis and this year DSE has been picked as a case study,” said MS Shantiwa.

Additionally, Iddi Ernest, a student from UDOM said the challenge will enable them to analyse investment issues and give them a wide scope to know how to make a profit through investment, especially in the stock market.

The competition provides students with hands-on mentoring and intensive training in financial analysis and ethics and tests participants’ analytical, valuation, reporting writing, and presentation skills.

Local-level competitions are organised and judged by CFA Society members and volunteers who function as local hosts.

The winning university team from each local competition advances to one of the three regional competitions.